Gold prices are declining for the second consecutive day from record highs after volatility triggered by the Fed's actions.
For the second day in a row, gold prices are retreating from record highs after volatility sparked by the Fed's moves. The metal broke below $3658 and the 50-period Simple Moving Average (SMA) on the 4-hour chart, shifting momentum to the downside. This opens the way toward the psychological level of $3600, with stronger support seen in the $3565–3578 level, where the 100-SMA on the 4-hour chart is located.
The $3658 level, together with the 50-period SMA, now acts as resistance, capping any rebound attempts from current levels. A breakout above this zone would pave the way for another test of the $3700–$3707 level. A decisive move beyond the record high would trigger continuation of the bullish trend.
The Relative Strength Index (RSI) remains in negative territory on the 4-hour chart, reinforcing the bearish momentum. If gold fails to recover above $3658, near-term risks remain skewed to further downside. However, it is worth noting that this is a short-term development, as oscillators on the daily chart remain in positive territory, retreating from overbought conditions, which keeps the broader outlook for gold tilted to the upside.
The material has been provided by InstaForex Company - www.instaforex.com
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Gold prices are declining for the second consecutive day from record highs after volatility triggered by the Fed's actions.
For the second day in a row, gold prices are retreating from record highs after volatility sparked by the Fed's moves. The metal broke below $3658 and the 50-period Simple Moving Average (SMA) on the 4-hour chart, shifting momentum to the downside. This opens the way toward the psychological level of $3600, with stronger support seen in the $3565–3578 level, where the 100-SMA on the 4-hour chart is located.
The $3658 level, together with the 50-period SMA, now acts as resistance, capping any rebound attempts from current levels. A breakout above this zone would pave the way for another test of the $3700–$3707 level. A decisive move beyond the record high would trigger continuation of the bullish trend.
The Relative Strength Index (RSI) remains in negative territory on the 4-hour chart, reinforcing the bearish momentum. If gold fails to recover above $3658, near-term risks remain skewed to further downside. However, it is worth noting that this is a short-term development, as oscillators on the daily chart remain in positive territory, retreating from overbought conditions, which keeps the broader outlook for gold tilted to the upside.
The material has been provided by InstaForex Company - www.instaforex.com